- Absolute Return strategies delivered positive, uncorrelated returns amid heightened policy, geopolitical and market volatility.
- PCAM Blue Chip achieved +10.8% net return (USD share class) in 2025 with equity beta close to zero.
- PCAM Select delivered +7.7% net return (USD share class), continuing to generate alpha from niche and underrepresented strategies.
- Strong outlook for 2026 supported by persistent market dislocations and continued investor demand for low beta strategies.
Prime Capital AG (“Prime Capital”) announces the results of its Absolute Return segment for the year 2025. Despite a backdrop of policy shocks, geopolitical tensions and rapidly shifting market narratives, the firm’s Absolute Return portfolios delivered positive, very resilient and largely uncorrelated performance, supported by disciplined risk management and diversified alpha sources across market-neutral, event-driven, arbitrage and macro strategies.
PCAM Blue Chip Ltd, Prime Capital’s flagship fund of hedge funds focused on large, institutionally scaled managers, generated a net return of +10.8% in 2025 with an equity market beta close to 0. Performance was driven by positive contributions across all five core strategy pillars, with multi-strategy, fundamental equity, quantitative, macro and event-driven strategies all adding positive value over the course of the year. Results reflected meaningful dispersion across managers and sub-strategies, underscoring the benefits of diversification and active portfolio construction.
PCAM Select, which complements PCAM Blue Chip by focusing on specialist and niche hedge fund strategies, delivered a +7.7% net return in 2025 with an equity beta of 0.1. Returns were driven by selective allocations across event-driven, fundamental equity, macro and quantitative strategies, with different sleeves contributing at different times during the year. The fund’s structure allowed dispersion to work in its favor, resulting in a resilient and well-balanced return profile.
“We are pleased to have delivered – once again – positive, uncorrelated returns in a year that tested investors’ conviction and adaptability,” comments Tilo Wendorff, Head of Absolute Return. “2025 was characterized by extremes rather than trends, and our managers were able to capitalize on mispricings created by overreactions, policy uncertainty and shifting market regimes. Discipline, diversification and flexibility once again proved to be decisive.”
Andreas Kalusche, CEO of Prime Capital, adds: “Investor demand for strategies with low correlation to traditional asset classes continues to gain further momentum since a couple of years, and we saw this reflected in ongoing asset growth across our Absolute Return platform. We have been very successful attracting investors in Germany and Switzerland as well as in international markets in 2025. With assets under management reaching USD 1.9 billion, including PCAM Select surpassing the USD 200 million mark, we are well positioned to further scale our offering while preserving the quality and selectivity that define our approach.”
Investment highlights and strategy developments
In 2025, multi-strategy managers were the largest contributors to PCAM Blue Chip, reflecting their ability to dynamically allocate risk in a highly volatile environment. Fundamental equity, quantitative, macro and event-driven strategies all contributed positively, supported by stock-picking opportunities, systematic diversification and selective exposure to emerging market rates, merger arbitrage, volatility and credit situations. Within PCAM Select, returns were driven by a well-balanced mix of event-driven, fundamental equity, macro and quantitative strategies, with different sleeves contributing at different points during the year. Prime Capital actively managed both portfolios, adding complementary managers, selectively increasing exposure to existing positions and redeeming from strategies that no longer met forward-looking investment criteria.
Business Update and outlook
Prime Capital continued to enhance its operational platform, strengthening data infrastructure, due diligence processes and its IT stack. Looking ahead to 2026, the firm sees a constructive opportunity set for Absolute Return strategies, as persistent policy uncertainty, geopolitical risks and market dislocations continue to create attractive conditions for disciplined, market-neutral and opportunistic investment approaches.
About Prime Capital:
Founded in 2006, Prime Capital AG is an independent asset management firm and financial services provider, owned by management as well as current and former senior employees. The company takes a holistic, cross-divisional approach and specializes in Alternative Investments, in particular in Absolute Return, Energy Infrastructure, and Private Debt. Furthermore, the company provides Access Solutions for access to Alternative Investments through securitizations and fund structures. Prime Capital currently employs about 120 people in Frankfurt and Luxembourg and is regulated by BaFin and CSSF.
As of December 2025, Prime Capital has approximately EUR 4.1bn Assets under Management as well as EUR 9bn Assets under Administration.
For additional information, quotes or requests please contact:
Prime Capital AG
Andreas Kalusche, CEO
Andreas.Kalusche@primecapital-ag.com
Questions regarding the content please contact Tilo Wendorff
Tel: +49 69 9686 984 378
Tilo.Wendorff@primecapital-ag.com
www.primecapital-ag.com